Honda Allowed to Make Cars in Vietnam

Honda Allowed to Make Cars in Vietnam

Vietnam Deputy Prime Minister Nguyen Tan Dzung has agreed in principle to allow on Honda’s Vietnam branch (HVN) to increase investment to produce cars in the Southeast Asian country.

The deputy prime minister also asked the Ministry of Planning and Investment and other relevant bodies to consider Honda Vietnam’s investment adjustment plan.

According to its proposal, Honda Vietnam (HVN), the largest motorbike maker in Vietnam, will raise its investment capital to USUS$209.2 million from current USUS$151.2 million to manufacture cars of up to nine seats.

Its legal capital will also be swollen to USUS$62.9 million from current USUS$45.4 million, a HVN official said.

Honda will build factories capable of turning out 15,000 automobiles per annum, a corporate official said, adding that Honda Vietnam will also produce auto parts and provide auto services.

Honda is now only manufacturing motorbikes in Vietnam. In 2004, it sold 566,000 motorcycles in the country, accounting for over 41 per cent of the market share.

• B.T